TRU Precious Metals Corp. (TSXV: TRU) announced today that it has recently closed its non-brokered private placement offering for total gross proceeds of $3.5 million. The offering saw participation by Canadian businessman Eric Sprott, making him a major shareholder of the company.
“Mr. Sprott’s participation in this financing is a huge vote of confidence in the company and the potential of our district-scale land package in the Central Newfoundland Gold Belt,” said TRU CEO Joel Freudman.
Pursuant to the offering, the company issued 13.0 million flow-through units at $0.27 per unit. Each unit consists of one flow-through common share and one warrant to purchase a flow-through common share. A whole warrant is exercisable to purchase a TRU common share at $0.35 per share within 3 years from issuance.
The company said proceeds from the offering will be used to fund exploration programs on TRU’s properties in the Central Newfoundland Gold Belt and other qualified mining expenditures. These expenses include an exploration program at the company’s Golden Rose project; and a planned phase one drilling program at the Twilite Gold project.
Eric Sprott is believed to have a 24.0% stake in the company on a partially diluted basis following the offering, holding 9.1 million common shares and an additional 9.1 million warrants. Notably, Sprott issued a release last night indicating he acquired the units at a price of $0.22 per unit, which is lower than the financing price announced by the company this morning. The discount was reportedly related to a “private agreement exemption.”
TRU Precious Metals Corp. last traded at $0.315 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The Greats: Canada’s Notable Mining Financiers
Mining exploration, besides being a high-risk, high-reward endeavour, is a very capital intensive business. It...